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An Analysis of Vegetable Contracts

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  • Edward V. Jesse
  • Aaron C. Johnson

Abstract

A major portion of the quoted base price variation of green pea and sweet corn contracts used by Wisconsin vegetable processors in 1968 is shown to be associated with variation in other provisions of the contracts. A net price for contracts is derived by adjusting quoted base prices for the effects of nonprice provisions. The adjustment process involves utilization of a dualstage estimating procedure which separately considers the effects on price of quantitative and qualitative provisions. The relative stability of the adjusted price among contracts implies competitive raw product markets for these vegetable crops.

Suggested Citation

  • Edward V. Jesse & Aaron C. Johnson, 1970. "An Analysis of Vegetable Contracts," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 52(4), pages 545-554.
    • Handle: RePEc:oup:ajagec:v:52:y:1970:i:4:p:545-554.
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    File URL: http://hdl.handle.net/10.2307/1237262
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    Cited by:

    1. Rhodes, V. James, 1973. "Role Of Marketing And Procurement Systems In The Control Of Agriculture," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 5(2), pages 1-6, December.
    2. Tomek, William G. & Robinson, Kenneth L., 1977. "PART V. Agricultural Price Analysis and Outlook," AAEA Monographs, Agricultural and Applied Economics Association, number 337217, january.

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